By Suzanne Marta, The Dallas Morning
NewsMcClatchy-Tribune Business News

Jan. 6, 2007 - Warwick International Hotels said Friday that
it has purchased Dallas' historic Melrose Hotel and is planning a major
upgrade of its guest rooms and public areas.

The 83-year-old hotel, in the Oak Lawn neighborhood, will be
renamed the Warwick Melrose Hotel and will continue to be run by
general manager J. Thomas Baker.

Mr. Baker said the hotel's popular Landmark restaurant is
slated for some refurbishments, but he promised that the iconic Library
Bar will remain the same.

"You have to be careful what you do in the Library," he said.
"If we change the carpet in there, I'll get a note from a guest about
it."

Terms of the deal were not disclosed.

The Dallas Central Appraisal District assessed the property at
$14.8 million last year.

Company officials did not offer details about the renovations
but said they would begin this year.

Richard Chiu, Warwick's president, said Friday that he was
attracted to Dallas' strong corporate base and ties to key business
markets, including New York.

"We see Dallas as a gateway city," Mr. Chiu said.

Warwick, which is based in Paris, owns, operates or markets 40
luxury hotels globally, including four in the United States.

The hotel company said it hopes to use its global footprint to
attract a broader customer base to the Dallas property.

"Now we'll have an international database of customers to mine
and an international sales presence," Mr. Baker said.

Mr. Baker said the Melrose has competed successfully in the
Dallas market, attracting average room rates of $171 and an occupancy
level around 65 percent.

The hotel recently earned a four-diamond rating by travel
services firm AAA, up from the three-diamond level it held previously.
Its Landmark restaurant, which had been unrated by AAA, also earned
four diamonds.

Greg Crown, a hotel analyst with PKF Consulting in Dallas,
said Warwick isn't as well-known in the United States, but the
affiliation may prove important as Melrose faces more competition from
the newly opened W Victory Dallas and the Ritz-Carlton slated to open
this summer.

"Brands are very powerful in Dallas," Mr. Crown said. "This is
a step in the right direction."